I found this trade idea on RealGM, I slightly adjusted it.

Indiana trades:
Dahanty Jones
2013 First round pick

New Orleans trades:
Trevor Ariza

The Hornets probably don't need Ariza and his contract. So they should say yes.
The Pacers don't really need Cap Space to sign players. They are below the cap by a lot, and the only players becoming free agents next season are Roy Hibbert and George Hill, Both RFAs, can be resigned even when you're over the "soft" cap, depends on whether you have an owner who is willing to spend.
Ariza is overpaid but he's a good player and I honestly don't think his contract is that horrible. Bad contract no doubt, but having him off the bench is quite a luxury.
This trade also allows us to add a pretty major piece without losing any of our core players.

New Pacers Rotation:

Collison/Hill/Price
George/Ariza/Hill
Granger/Ariza
West/Hansbrough
Hibbert/Foster

What do you guys think?